SarbanesOxley

1
Sarbanes-Oxley

• by David Bailey CSCI 225

2
Sarbanes-Oxley

• Sarbanes-Oxley Act of 2002
• The Good, the Bad and the Bureaucracy
• Developers Needed
• Kill Dirt with 302, 404 and 409
• The Role of IT in Sox/SarbOx
• Not a Bird, not a Plane its son of Y2K

3
More Sarbanes than Oxley

• the Sarbanes-Oxley Act of 2002
• Federal law requiring all publicly held
  companies to perform and make public ongoing
  audits both internally and financially and
  validate them with a registered CPA.
• Mostly based on Senator Paul Sarbanes bill but
  with additions from a bill by Representative
  Michael G. Oxley.

4
Sarbanes-Oxley

• Sarbanes-Oxley Act of 2002
• The Good, the Bad and the Bureaucracy
• Developers Needed
• Kill Dirt with 302, 404 and 409
• The Role of IT in Sox/SarbOx
• Not a Bird, not a Plane its son of Y2K

5
Good, Bad and Bureaucracy

• Good Laws are good when they work. Richard M.
  Scrushy, CEO of HealthSouth, the first executive
  charged under Sarbanes-Oxley.
• Bad We can expect surprises.
• Cray Inc.s exodus of responsible management and
  class-action suit.
• Bureaucracy Recording artists get paid.
• Courtney Love has options.

6
Sarbanes-Oxley

• Sarbanes-Oxley Act of 2002
• The Good, the Bad and the Bureaucracy
• Developers Needed
• Kill Dirt with 302, 404 and 409
• The Role of IT in Sox/SarbOx
• Not a Bird, not a Plane its son of Y2K

7
Developers Needed

• 3 bn was spent on Sarbox compliance in 2003.
  About 90 of that was spent on internal staff and
  consultants. (source www.cio.com)
• Process systems are often customized for unique
  businesses. This is expensive if you have to
  unplug current systems.

8
Sarbanes-Oxley

• Sarbanes-Oxley Act of 2002
• The Good, the Bad and the Bureaucracy
• Developers Needed
• Kill Dirt with 302, 404 and 409
• The Role of IT in Sox/SarbOx
• Not a Bird, not a Plane its son of Y2K

9
Kill Dirt with 302, 404 and 409

• Section 302 CEO and CFO pledge to produce
  internal controls.
• Section 404 Framework of controls generates
  report (Software and hardware system that
  remembers unchangeably who last modified it and
  when).
• Section 409 Reporting required in real time

10
Sarbanes-Oxley

• Sarbanes-Oxley Act of 2002
• The Good, the Bad and the Bureaucracy
• Developers Needed
• Kill Dirt with 302, 404 and 409
• The Role of IT in Sox/SarbOx
• Not a Bird, not a Plane its son of Y2K

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the Role of it in Sox/SarbOx

• Evolution of process software
• MRP manufacturing resource planning
• ERP some of the largest bodies of code ever
  written enterprise resource planning
• ERP II modularized
• EAP web based enterprise application
  planning
• Above were traditionally controlled by IT but
  because of possible jail time, few CFOs want to
  give up the lead. Whether CFOs leadership will
  technologically maintainable is often questioned.

12
Sarbanes-Oxley

• Sarbanes-Oxley Act of 2002
• The Good, the Bad and the Bureaucracy
• Developers Needed
• Kill Dirt with 302, 404 and 409
• The Role of IT in Sox/SarbOx
• Not a Bird, not a Plane its son of Y2K

13
Not a Bird, not a Plane its son of Y2K

• Company Size Differentiation Y2K had eclectic
  requirements depending on the software and
  hardware. Also larger companies needed more work
  but not more specialized work as in SarbOx.
• Company Type Differentiation The Sarbanes-Oxley
  Act is designed to protect shareholders and
  therefore only applies to publicly held companies.

14
Sarbanes-Oxley

• Sarbanes-Oxley Act of 2002
• The Good, the Bad and the Bureaucracy
• Developers Needed
• Kill Dirt with 302, 404 and 409
• The Role of IT in Sox/SarbOx
• Not a Bird, not a Plane its son of Y2K

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References

• en.wikipedia.org/wiki/Sarbanes-oxley
• www.cio.com/archive/070104/sarbox.html
• en.wikipedia.org/wiki/Cray_Inc
• www.mp3newswire.net/stories/5002/sarbanes.html